Let’s get back to work! Boring summer weeks are over hopefully and BTC/USD is starting to move nicely for booking some profit of a rise or fall.
What’s the big picture? The long term market (weekly chart) is still in a consolidation phase with clearly marked high ($259) and low ($45) point. And it will stay so for a considerable chunk of time. Looking at the daily chart picture starts to be more interesting. After breaking $100 barrier two weeks ago even the biggest bears should have to reconsider their trading intentions now. Especially when they take into account breaking 61,8% fibo retracement of the last down move last week (though it’s very questionable how far the pair’s price action respects these technical indicators, right?:). I’m not personally a fan of the “oh, let’s draw the line here” or “this indicator suits there” stuff as I look just at the price action, but some indicators are helpful sometimes. Fibo is one of them.
So what is the current price action telling me? After breaking up $100 level (well, more important was $80 level) BTC/USD should attack $120 and maybe $130 in its current steady rise. These are the most significant turning points in my chart. Action at these numbers will determine what would come next.
With that said let’s pick up the trading points (Bitstamp) for the coming week:
Buy: Now or anywhere down to 109; stop loss at 106; profit take: 119.00, 124.00 (if you’re bold:) )
Sell: 108; SL: 113; PT: 105; 103